Insuring Your Home For the New Year

For many of us, a new year brings the opportunity to make resolutions and look forward to a fresh start. But whilst many promises will no doubt revolve around food, cigarettes or more frequent visits to the gym, the current economic climate could lead many of us to think about making resolutions which revolve around our finances. From insurance to credit cards, January will bring a shock to many who've made use of their credit cards to buy presents and sort out bills. Indeed, many of us will be thinking about trying to get our financial situations to a more manageable level, and with a bit of careful planning you can help yourself to free up some much needed spare cash. As well as the mortgage payments, one of the main outgoings for homeowners will be the home insurance, one of the most important policies you have to take out. Indeed, many mortgage companies will have conditions that state you must arrange a home insurance policy before they'll consider covering you. Home insurance is split into two types: buildings and contents insurance, each with its own set of rules and will provide differing amounts of cover depending on the policy you choose. Some policies will offer the opportunity to combine the two into one policy, but this may leave you restricted in some areas of cover. So what's the difference between the two policy types? By researching what both offer before signing up for a policy, you can ensure that you are covering the right items as well as saving yourself some money: Buildings insurance does exactly what it says on the tin, in that it covers the structure of your home against factors such as fire, flood and vandalism. The level of cover can also be extended to include nearby external structures such as garages, fences and even your garden shed if you want it to. Homeowners usually have to sort out their own policies, whereas if you're renting a property the level of cover will be the responsibility of your landlord. Some providers will offer home insurance cover as part of a mortgage policy, but it can be worth searching the market and doing some home insurance comparison to find your own policy before you choose to sign up, for this could prove to be a cheaper option for you. Contents insurance covers items which you'd take with you when moving house. This can include everything from electrical equipment, clothing and valuable items up to a certain amount, as well as providing cover for situations such as stolen keys and accidental damage. Making a note of the items in your property and letting your insurer know about them can help when you're making a claim. By being honest with your insurer you are more likely to have equipment replaced should you need to make a claim, and can also help to secure a cheaper deal when searching for home insurance quotes.